Impact of China's Lockdown on Semiconductor Supply Chain Disruption
Logistics Delays... Many PC Product Lines Affected
Delivery Takes 1.5 to 2 Months
[Asia Economy Reporter Cha Min-young] "It's really hard to buy an iMac. I ordered it in March this year, but it has been delayed twice, and I’m worried that I can only receive it in June." Mr. Han Jeong-su (pseudonym), who purchased the 24-inch iMac, an all-in-one desktop PC, from the Korean Apple online store, expressed frustration over the delayed delivery. He is considering whether to find a reseller who quickly secured stock.
Apple customers in Korea and abroad are suffering from delayed deliveries after ordering products due to disruptions in the global semiconductor supply chain and logistics issues caused by China’s COVID-19 lockdown policies. This is also expected to negatively impact Apple’s performance.
Delivery Takes Up to 2 Months
According to the Korean Apple online store on the 26th, many PC product lines are currently estimated to take about 1.5 to 2 months for delivery. The 14-inch and 16-inch MacBook Pro laptop models are scheduled to be delivered between June 3 and 20, while some colors of the 24-inch iMac (yellow, orange, purple, etc.) will be delivered later, between June 8 and 22. During the same period, iPhones, iPads, and the 13-inch MacBook Pro model are expected to arrive around mid-May, which is much faster.
The newly released PC, the Mac Studio, which officially launches domestically on the same day, is also expected to be affected. The Mac Studio M1 Max model and M1 Ultra model are scheduled for delivery between June 13 and 20, and June 20 to July 4, respectively. The Studio Display, which will be sold starting in May, is currently estimated to be deliverable around June 14 to 27. IT specialist media MacRumors reported, "Apple expects supply delays not only for the MacBook Pro but also for the Mac Studio equipped with the M1 Ultra chip."
Repeated Supply Chain Disruptions from China
The combination of global semiconductor supply chain issues and lockdowns in COVID-19 affected areas in China is also causing delivery delays for domestic consumers. More than 30 Taiwanese companies, including Quanta Computer, which manufactures Apple MacBooks, have halted production due to COVID-19 lockdowns. In particular, the locked-down Shanghai factory is a critical outpost responsible for 20% of Quanta Computer’s production volume. Guo Mingqi, an Apple expert and TF International analyst, pointed out that "MacBook Pro delivery times will be delayed by about 3 to 5 weeks."
Apple also experienced supply disruptions last month for the same reasons. On the 14th of last month, China imposed a stay-at-home order and lockdown measures on Shenzhen City in Guangdong Province due to concerns over the spread of the Omicron variant. As a result, some factories of Apple partners Foxconn and Unimicron Technology suspended production.
The market’s attention is focused on Apple’s Q2 earnings announcement scheduled for the 28th (local time). Guo Mingqi said, "There is little time before the earnings announcement, so it will be difficult to explain how to diversify the supply chain, which is concentrated in China. If the situation regarding production resumption in China does not improve significantly, Apple may not provide Q3 earnings guidance during this earnings announcement."
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